Oct. 13--As it seeks to attain a full funding goal, the village of Oak Park is expecting to contribute more to its police and fire pension funds in the coming years.

According to village officials, Oak Park has set a goal to 100 percent fund its police and fire pension funds by 2040. The goal is lofty in comparison to the state's mandate of 90 percent pension funding by 2045.

According to a village memo, the recommended police pension fund levy for the upcoming year will increase from $5,470,687 to $6,211,250. The fire pension levy, however, is expected to decrease from $5,277,679 to $5,158,133.

Pension fund data was presented to the village board at an Oct. 11 finance committee meeting, one of several meetings scheduled as trustees work on the 2019 village budget.

Actuarial consultant Jessica Fain, of Lauterbach & Amen LLP, said each pension fund saw better returns on investment than could be expected last year. Fain also discussed other demographic changes that swayed the 2019 funding requirements.

"Our funds are about 50 percent funded," Fain said. "The fire pension fund was in at about 38 percent funded, and now we're in the low 40s. Police was at 51 percent, and now we are at 55.9 percent. Both of our funds had a nice increase in funding percentage over just one fiscal year. It was a really great year in the markets."

Officials said the fire pension fund has 64 active members, compared to 111 inactive members. Last year, eight firefighters were hired, and three retired. Two members were terminated last year, and four retirees died, with two of them having eligible surviving spouses. In addition, there were six surviving spouses who died, which led to a decrease for the recommended contribution.

The police pension fund has 111 active members, with 128 inactive. In 2018, there were 10 police officers hired, and five members had their employment terminated. Two retirees died during the year without eligible surviving spouses. In addition, five surviving spouses died, while 122 beneficiaries maintained benefit collection status.

According to Fain, the village has a goal of increasing its pension fund payments by about 3 to 4 percent annually in order to meet its 2040 funding goals.

"You have a really nice history of always contributing more than the tax levy contribution to the fund, which has really helped," Fain said. "That's definitely not the case for a lot of places. This is all based on trying to get to 100 percent by 2040. The nice thing about targeting 100 percent as we approach that date is you've built a nice cushion in where you'll definitely be statutorily compliant."

Officials said a November 2016 decision to contribute additional money to the firefighter pension fund proved fruitful, as it led to much greater return on investments with the improved market.

"The timing couldn't have been better last year," fire pension attorney Carolyn Clifford said. "The village put 143 percent of what was required with that extra infusion. You completely capitalized on that investment. It was the right time, and it really paid off."

While last year's investments exceeded expectations, officials pledged to carefully monitor the village's pension funds as a downturn could occur at any given time.

"We know the markets are going to be volatile," Fain said. "Just because last year was a great year doesn't mean we're suddenly going to drop your tax levy."